Idorsia Ltd (IDIA) AI Stock Analysis

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Idorsia Ltd

(IDIA)

Rating:51Neutral

Price Target:

CHF2.50

▼(-8.09% Downside)

Idorsia Ltd's overall stock score is primarily impacted by its weak financial performance, characterized by consistent losses and high leverage. While the earnings call provided a positive outlook with significant improvements in sales and financial metrics, the company's valuation remains unattractive due to ongoing losses. Technical analysis indicates some positive momentum, but the stock's financial challenges weigh heavily on its overall score.

Idorsia Ltd (IDIA) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap

CHF619.27M

Dividend YieldN/A

Average Volume (3M)1.81M

Price to Earnings (P/E)―

Beta (1Y)2.77

Revenue Growth67.18%

EPS Growth-480.10%

CountryCH

Employees636

SectorHealthcare

Sector Strength47

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.01

Shares Outstanding228,721,160

10 Day Avg. Volume1,249,998

30 Day Avg. Volume1,810,745

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

CHF2.10

Price Target Upside-22.79% Downside

Rating ConsensusHold

Number of Analyst Covering2

Idorsia Ltd Business Overview & Revenue Model

Company DescriptionIdorsia Ltd, a biopharmaceutical company, discovers, develops, and commercializes drugs for unmet medical needs in Switzerland. The company has a clinical development pipeline that cover various therapeutic areas, including CNS, cardiovascular, and immunological disorders, as well as orphan diseases. Idorsia Ltd has a collaboration agreement with Janssen Biotech Inc. to jointly develop and commercialize aprocitentan and its derivative compounds or products; license agreement with Mochida Pharmaceutical for the supply, co-development, and comarketing of daridorexant; and Hoffman-La Roche Inc. to develop and market compounds in the field of cancer immunotherapy. It also has a collaboration with Antares Pharma, Inc. for the development of a self- administered drug device product for Selatogrel; and Neurocrine Biosciences, Inc. to develop and commercialize ACT-709478, which is in Phase II clinical trial for the treatment of epilepsy. The company was incorporated in 2017 and is headquartered in Allschwil, Switzerland.

How the Company Makes MoneyIdorsia generates revenue primarily through the development and commercialization of its pharmaceutical products. The company earns money by selling its products once they receive regulatory approval. Additionally, Idorsia may also enter into collaborations and partnerships with other pharmaceutical companies, which can provide upfront payments, milestone payments based on development progress, and royalties on future sales of the products developed through these partnerships. The company’s revenue model is supported by its pipeline of drug candidates that target significant therapeutic areas, enhancing its potential for future earnings as these products progress through clinical trials and towards market entry.

Idorsia Ltd Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong growth in QUVIVIQ sales, significant improvements in financial metrics, and promising pipeline developments. However, challenges remain with flat U.S. sales and uncertainties in regulatory processes. Overall, positive developments and strategic advancements contribute to a cautiously optimistic outlook.

Q2-2025 Updates

Positive Updates

QUVIVIQ Sales Surge

QUVIVIQ net sales in H1 2025 more than doubled compared to last year, rising from CHF 23 million to CHF 56 million, showcasing strong commercial traction and growing demand.

Significant Operating Improvement

Improvement in non-GAAP operating results from negative CHF 170 million to negative CHF 15 million, driven by financial discipline and increased sales.

Strategic Partnerships and Approvals

Secured new partnerships and approvals, including QUVIVIQ's approval in China with Simcere, contributing to the extension of Idorsia's cash runway to the end of 2026.

Positive Financial Metrics

Net revenue of CHF 130 million includes CHF 58 million from total QUVIVIQ product sales, a significant increase compared to CHF 24 million in H1 2024.

Pipeline Advancements

Advancements in the pipeline with new data for lucerastat supporting further Phase III investigation, and Phase I study for C. diff vaccine showing positive results.

Negative Updates

Flat U.S. Sales

QUVIVIQ sales in the U.S. remained relatively flat despite significant reduction in sales and marketing costs, with a slight decline in sales.

Uncertainty in Descheduling Process

The descheduling process for the DORA class in the U.S. remains uncertain, with no clear timeline for FDA and DEA processes.

Financial Loss

Guidance indicates a non-GAAP EBIT loss of CHF 100 million and a U.S. GAAP EBIT loss of CHF 55 million, although improved from previous periods.

Company Guidance

In the Idorsia Half Year 2025 Financial Results Webcast and Conference Call, the company provided an optimistic outlook for its future performance. The guidance reiterated the goal of achieving commercial profitability in 2026 and overall profitability by the end of 2027. Key metrics highlighted include a significant growth in QUVIVIQ net sales, which more than doubled from CHF 23 million to CHF 56 million in the first half of 2025. The non-GAAP operating results improved dramatically, from a loss of CHF 170 million to a loss of CHF 15 million. The company's cash runway was extended to the end of 2026, securing further financial stability. Additionally, Idorsia updated its guidance for the partner-led business due to higher milestone payments, leading to an overall non-GAAP EBIT loss of CHF 100 million and a U.S. GAAP EBIT loss of CHF 55 million for 2025. These developments position Idorsia on a solid path to achieving its strategic and financial objectives.

Idorsia Ltd Financial Statement Overview

Summary

Idorsia Ltd faces significant financial challenges, marked by consistent losses and high leverage. The company's negative profitability metrics and cash flow issues indicate operational inefficiencies. Despite some improvements in cash flow, the overall financial health remains strained with high debt levels and negative equity.

Income Statement

Negative

Idorsia Ltd's revenue has seen fluctuations with a noticeable decline of 26.19% from 2023 to 2024. The company consistently reports negative EBIT and net income, indicating ongoing operational challenges. The negative gross profit margin in 2024 suggests cost structure issues. Overall, the company struggles with profitability, reflected in the negative margins.

Balance Sheet

Negative

The balance sheet shows a negative stockholders' equity, which raises concerns about financial stability. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt level is a potential risk. The equity ratio is negative, indicating that liabilities exceed assets, which is concerning for investors.

Cash Flow

Neutral

Operating cash flow remains negative, indicating challenges in generating cash from operations. However, there is a positive trend in free cash flow from 2023 to 2024, though it remains negative. The free cash flow to net income ratio is not favorable, reflecting difficulties in managing cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	217.23M	112.51M	152.39M	97.10M	35.35M	71.76M
Gross Profit	107.06M	-67.08M	145.24M	90.84M	17.32M	-309.32M
EBITDA	-51.61M	-319.49M	-254.55M	-783.09M	-588.84M	-420.64M
Net Income	-133.26M	-263.76M	-297.92M	-827.90M	-634.60M	-445.12M
Balance Sheet
Total Assets	498.01M	505.89M	500.00M	904.18M	1.48B	1.44B
Cash, Cash Equivalents and Short-Term Investments	82.16M	124.36M	157.82M	476.32M	1.04B	1.01B
Total Debt	1.30B	1.26B	1.20B	1.23B	1.16B	637.99M
Total Liabilities	1.64B	1.72B	1.47B	1.57B	1.38B	849.88M
Stockholders Equity	-1.14B	-1.21B	-968.72M	-660.96M	104.20M	585.48M
Cash Flow
Free Cash Flow	-261.77M	-373.23M	-638.69M	-886.17M	-620.83M	-373.95M
Operating Cash Flow	-250.65M	-370.23M	-629.30M	-859.11M	-589.89M	-364.67M
Investing Cash Flow	-4.84M	305.06M	632.61M	743.90M	-53.26M	-607.13M
Financing Cash Flow	91.58M	26.11M	-197.00K	162.31M	604.15M	850.08M

Idorsia Ltd Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.72

Price Trends

50DMA

2.54

Positive

100DMA

1.99

Positive

200DMA

1.46

Positive

Market Momentum

MACD

0.01

Positive

RSI

52.33

Neutral

STOCH

65.49

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:IDIA, the sentiment is Positive. The current price of 2.72 is below the 20-day moving average (MA) of 2.75, above the 50-day MA of 2.54, and above the 200-day MA of 1.46, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 65.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:IDIA.

Idorsia Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSLN	65 Neutral	CHF566.94M	7.82		―	58.51%	―
Sector *	51 Neutral	$7.81B	-0.22	-40.01%	2.29%	21.48%	-2.11%
IDIA	51 Neutral	CHF619.27M	―		―	67.18%	-480.10%
MLLCF	―	$147.59M	―	-48.90%	―	―	―
CSBTF	―	$1.17B	―	-7.82%	―	―	―
NWPHF	―	$214.29M	11.40		―	―	―
SPHDF	―	$221.34M	2.70	-93.91%	―	―	―

* Healthcare Sector Average

Performance Comparison

CH:IDIA

Idorsia Ltd

2.72

0.58

27.10%

MLLCF

Molecular Partners AG

4.22

-1.67

-28.35%

CH:BSLN

Basilea Pharmaceutica

46.35

0.35

0.76%

CSBTF

Kuros Biosciences

31.38

13.16

72.23%

NWPHF

Newron Pharmaceuticals SpA

9.36

0.26

2.86%

SPHDF

Santhera Pharmaceuticals Holding

17.25

5.55

47.44%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025